Cheyenne Enterprises manufactures Nuts and Bolts from a joint process (cost = $80,000). Five thousand pounds of Nuts can be sold at split-off for $20 per pound; ten thousand pounds of Bolts can be sold at split-off for $15 per pound. For product costing purposes Cheyenne allocates joint costs using the relative sales value method.

The amount of joint cost allocated to Nuts and Bolts, respectively, would be:

Multiple Choice

• $32,000 and $48,000.

• $40,000 and $32,000.

• $48,000 and $32,000.

• $40,000 and $40,000.

• $32,000 and $40,000.